LNG Terminal in Lithuania Security of Gas Supply

Transcription

1 LNG Terminal in Lithuania Security of Gas Supply Tadas Matulionis Deputy Director, LNG Terminal Klaipėdos Nafta November, 2013 Gas Naturally Event, Brussels

2 Content 1. Security of Gas Supply 2. The LNG Terminal in Lithuania 3. Business Model 4. Financing of LNG Terminal Infrastructure 5. Small Scale LNG activities 6. Closing Remarks

3 1. Security of Gas Supply 3

4 1. Security of Gas Supply Market Source THREE main challenges Price 4

5 1. Security of Gas Supply Currently there is no gas market between the Baltic states and Finland Market The interlinks between countries are weak There are major infrastructure projects to Source enhance the situation Projects for diversification Price Existing pipeline Future projects Annual gas consumption 1. Baltic Interconnection 2. Interconnection Lithuania- Poland 3. Gas Storage Capacities 4. LNG terminal in Klaipėda 5

6 1. Security of Gas Supply Source Market Currently only one source of gas extreme dependency on a single supplier Low energy security level on the regional scale One of the last Energy Islands in Europe Price 6

7 1. Security of Gas Supply Comparison of EU wholesale gas prices TOP 5 Source Market Rank Country 1. Lithuania 2. Czech Republic 3. Greece 4. Latvia 5. Estonia Price Price in /MWh, July 2013 Source: European Commission 7

8 2. The LNG terminal in Lithuania Impact Third party access will spur competition The terminal will help to diversify energy sources Ensures security of energy supply Import prices will reflect the global market price level 8

9 Testing 2. The LNG terminal in Lithuania Project timeline Construction of FSRU Construction of the Jetty Construction of the Pipeline Left dry dock LNG terminal is scheduled to start operations by December 2014 Project implementation timeframe less than 3 years LNG terminal will be open for capacity booking and gas trading Environmental Studies Full scale EIA Regulatory Framework LNG terminal law Financing Signed contract with EIB Third party Transmission pipeline (by TSO) Dredging of the port (by the Port Authority) Jetty (by the Port Authority) 9

10 2. The LNG terminal in Lithuania Project Ingredients 1. Floating Storage and Regasification Unit (FSRU) m long jetty km long connection to the gas transmission operator (Amber Grid) 10

11 The Baltic Sea Pig s Back island Jetty and FSRU The connecting gas pipeline

12 Launch of the FSRU Independence in Hyundai Heavy Industries dock in South Korea, 3 rd of May, 2013

13 The regasification unit, mounted on the FSRU, tested and certified by the end of June, 2013

14 LNG tanks of the FSRU are currently under construction

15 2. The LNG terminal in Lithuania FSRU 45 m 12,6 m Tech specs Location Supplier Southern part of Klaipėda sea port Höegh LNG 294 m Storage capacity m 3 Annual capacity Up to 4 bcm of regasified NG 15

16 2. The LNG terminal in Lithuania The Jetty FSRU High gas pressure arms Mooring decks Berthing decks High gas pressure platform Bridge Pipeline 450 m 16

17 FSRU Independence LNG Carrier The Jetty High gas pressure platform Service platform Pipeline Pig s Back island

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19 2. The LNG terminal in Lithuania The Pipeline The gas metering station The 18 km long Pipeline Horizontal directional drilling 19

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23 2. The LNG terminal in Lithuania The Pipeline Quick-sand! Large stones Mines Construction junk 23

24 3. The Business Model Full Ownership Unbundling LNG Terminal Infrastructure Gas Trading Key financials (2012, mln, EUR) Revenue 40,2 EBITDA 20,2 EBITDA margin 50% Assets 129 Key financials (2012, mln, EUR) Revenue 811 EBITDA 157 EBITDA margin 19,4% Assets

25 3. The Business Model Gas trading volume capacity 18% Security of supply minimum for 5 years LNG Terminal Infrastructure Up to 3 bcm of NG annually Sells regasification capacity to companies Capacities of LNG Terminal will be open for suppliers to fill demand in: Domestic Lithuanian and Baltic markets (+Finland, it is planned that the Baltic Connector pipeline will be completed by 2015) Gas Trading Small scale activities 25

26 4. Financing of LNG Terminal Infrastructure Financing sources, mln. EUR FSRU guarantee Guarantee from a commercial bank Infrastructure (jetty, pipeline) Project management EIB loan NIB, commercial banks SC Klaipėdos nafta funds Additional security supplement For the initial period part of FSRU costs are socialized through gas transmission tariff. 27

27 5. Small Scale LNG LNG Feeder Vessel The LNG terminal will offer business opportunities: LNG trading LNG storage Infrastructure for small-scale LNG activities 27

28 5. Small Scale LNG The LNG terminal will create opportunities to small scale LNG activities Transshipment to small-scale vessels LNG bunkering Auto-tankers and railway tanker-cars 28

29 6. Closing Remarks The first full scale terminal in the Baltics and Nordic countries operational from the end of the next year Operational all-year round at an ice-free port Infrastructure for small-scale LNG activities Third party access will ensure competition on national and, possibly, on regional level More than 40 years of safe and efficient oil terminal operational experience 29

30 Thank you for your attention. Contacts: Tadas Matulionis Deputy Director, LNG Terminal Klaipėdos nafta Buriu 19, P.O.Box 81 LT Klaipeda Lithuania Phone: +370 (46) Fax: +370 (46)